Why Philippines’ online gaming industry may not survive coronavirus

Online casinos were forced to close during coronavirus lockdown, as they were deemed non-essential, and the industry has not fully reopened

The industry employs thousands of foreign workers, including many Chinese, and also relies heavily on demand from Chinese gamblers

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The Philippines’ gaming industry has faced waves of pressure including the threat of higher taxes and lawmakers’ calls for an outright gaming ban. Photo: SCMP Pictures

Published: 10:56am, 17 Jul 2020Updated: 9:03pm, 17 Jul 2020

With the twin global gaming centres of Macau and Las Vegas bleeding millions of dollars daily as casinos stand empty, the much smaller online gaming industry in the Philippines was supposed to benefit as gamblers logged into live-streamed bets to scratch the itch.

Instead, the US$8 billion gaming industry is also fighting for survival, with stark consequences for the country’s property and retail sectors.

After being closed for months as they were considered non-essential during the long lockdown to contain the coronavirus, Manila’s online casinos can still only partially operate. The restrictions have been weighing on their operations, said Ben Lee, a Macau-based managing partner at Asian gaming consultancy IGamiX.

This could be the tipping point for the country’s gaming industry, which has faced waves of pressure including the threat of higher taxes, lawmakers’ calls for an outright gaming ban and divisions over ugly accusations its largely migrant workforce brought crime to the country, and also worsened the virus outbreak.

Already, two of the nation’s 60 licensed operators in what had been a robust industry have shut their doors since the pandemic began.

“There are more to come. We’re just convincing them to stay,” said Jose Tria, who works for the nation’s gambling regulator as assistant vice-president for offshore gaming.

Only 14 of the operators have resumed operations; the rest are in wait-and-see mode.

If the industry collapses, it could leave empty as much as 3.4 million square metres of combined office and residential space as the industry’s migrant workers head home, according to Leechiu Property Consultants. That’s more than 600 football fields.